CEF predicts major fuel price cuts for January

While household budgets might be strained after the upcoming festive season spending spree, motorists can look forward to some fuel price relief in the new year.

According to the Central Energy Fund (CEF), the cost of filling up your car is set for substantial decreases in January 2023, with petrol prices looking to drop nearly R2/l and diesel by more than R3/l as a result of a drop in the international oil price and a relatively stronger rand.

Since the beginning of November, the rand has strengthened from over R18 to about R17.20 to the dollar, while the oil price has dropped from about $90 to $75 a barrel.

The latest forecast from the CEF) dated December 12 predicts the following fuel price changes in January:

• Petrol 93: Decrease of R1.97/l;
• Petrol 95: Decrease of R1.94/l;
• Diesel 0.05%: Decrease of R3.28/l; and
• Diesel 0.005%: Decrease of R3.38/l.

The official price adjustments in the first week of January will take into account data for the whole of December and could change significantly before year’s end, however.

After several hefty increases throughout the year, November saw some relief for owners of diesel vehicles when the wholesale diesel price dropped by up to R1.57/l  last month, though petrol rose 59c/l.

Inland motorists are now paying R23.16 for a litre of 93 unleaded and R23.46 for a litre of 95 unleaded. The wholesale price of diesel is R23.92 for a litre of 0.05% and R24.23 for a litre of 0.005%.

At the coast, a litre of 95 unleaded is R22.81. The wholesale price of diesel 0.05% is R23.27 and 0.005% is R23.59.